External Failure Costs are all costs associated with defects found after a product or service is delivered to the customer. These costs are crucial for understanding a company's approach to quality management and customer satisfaction.
In real estate appraisal, incurable depreciation occurs when the cost to correct a defect exceeds the benefit gained from the repair, making it uneconomical to spend on the repair.
Product liability refers to the legal responsibility of manufacturers, wholesalers, or retailers to ensure that their products are safe for consumers. It arises under the law of torts and holds parties strictly liable for defects that cause injury.
Spoilage refers to materials or goods that are rendered unusable or unsellable due to defects, damage, or expiration during the production process.
